Correlation Between Hainan Mining and Dalian Thermal
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hainan Mining Co and Dalian Thermal Power, you can compare the effects of market volatilities on Hainan Mining and Dalian Thermal and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hainan Mining with a short position of Dalian Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Dalian Thermal.
Diversification Opportunities for Hainan Mining and Dalian Thermal
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and Dalian is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Dalian Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Thermal Power and Hainan Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hainan Mining Co are associated (or correlated) with Dalian Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Thermal Power has no effect on the direction of Hainan Mining i.e., Hainan Mining and Dalian Thermal go up and down completely randomly.
Pair Corralation between Hainan Mining and Dalian Thermal
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 0.81 times more return on investment than Dalian Thermal. However, Hainan Mining Co is 1.24 times less risky than Dalian Thermal. It trades about 0.08 of its potential returns per unit of risk. Dalian Thermal Power is currently generating about 0.02 per unit of risk. If you would invest 725.00 in Hainan Mining Co on September 13, 2024 and sell it today you would earn a total of 33.00 from holding Hainan Mining Co or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Dalian Thermal Power
Performance |
| Timeline |
| Hainan Mining |
| Dalian Thermal Power |
Hainan Mining and Dalian Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Dalian Thermal
The main advantage of trading using opposite Hainan Mining and Dalian Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Dalian Thermal can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dalian Thermal will offset losses from the drop in Dalian Thermal's long position.| Hainan Mining vs. Silkroad Visual Technology | Hainan Mining vs. Longjian Road Bridge | Hainan Mining vs. Juneyao Airlines | Hainan Mining vs. Hainan Haiqi Transportation |
| Dalian Thermal vs. Jinhe Biotechnology Co | Dalian Thermal vs. Jiujiang Shanshui Technology | Dalian Thermal vs. Northking Information Technology | Dalian Thermal vs. Jiangxi JDL Environmental |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |